George King, chief financial officer, said, "The volume problems experienced in the first quarter continued into the most recent quarter and adversely affected operating profit. This combined with an investment of $400,000 in a highly desirable C3 countermeasures research contract, resulted in a loss for the quarter." He indicated the second quarter results are not representative of AEL's business plan for the year. "As as result of improved backlog, revenues are projected to improve during the last half," he added.
Revenues for the second quarter slipped to $24.6 million compared to $32.8 million in the comparative quarter last year. For the six months revenues totalled $52 million compared with $76.2 million for the first half of fiscal 1992.
The net loss in the second quarter was $182,000 or $.04 per share compared to net income of $186,000 or $.04 per share in the second quarter last year. For the six months, net income was $2.4 million or $.61 per share compared to net income of $636,000 or $.16 per share reported for the first half of last year.
King stated, "During the second quarter, AEL had new bookings of approximately $38 million and ended the period with a backlog of $151 million, up significantly from the year-end level of $127 million and surpassing the $145 million backlog at the end of the prior years' second quarter."
The new investment program, a C3 countermeasures R&D study, will address the increased use of commercial communications, such as cellular systems, for military applications. Under this contract, AEL will develop and evaluate countermeasure techniques to deny the use of these systems to potential adversaries.
AEL is a major supplier of electronic defense systems and subsystems. The company designs and manufactures sophisticated countermeasures, simulation and radar warning systems, engages in the installation and integrates electronic and avionics equipment in military aircraft, and provides state-of-the-art antenna systems, microwave integrated components and hybrid microelectronic circuits.
The Class A common stock of AEL Industries, Inc. is traded on the NASDAQ National Market System under the symbol AELNA.
AEL INDUSTRIES, INC.
(Dollars in thousands, except per-share amounts)
13 weeks ended 13 weeks ended
8/28/92 8/30/91
Sales and service revenues $24,551 $32,777
Income (loss) before income taxes,
extraordinary credit and cumulative
effect of change in accounting principle (325) 207
Income tax provision (benefit) (143) 132
Income (loss) before extraordinary credit
and cumulative effect of change in
accounting principle (182) 75
Extraordinary credit - benefit of net
operating loss carryforward --- 111
Cumulative effect of change in accounting
for income taxes --- ---
Net income (loss) (182) 186
Earnings per share:
Income (loss) before extraordinary credit
and cumulative effect of change in
accounting principle $(.04) $.01
Extraordinary credit - benefit of net
operating loss carryforward --- .03
Cumulative effect of change in
accounting for income taxes --- ---
Net income (loss) (.04) .04
Weighted average shares outstanding 3,920,000 3,897,000
26 weeks ended 27 weeks ended
8/28/92 8/30/91
Sales and service revenues $51,995 $76,219
Income (loss) before income taxes,
extraordinary credit and cumulative
effect of change in accounting principle (282) 707
Income tax provision (benefit) (126) 333
Income (loss) before extraordinary credit
and cumulative effect of change in
accounting principle (156) 374
Extraordinary credit - benefit of net
operating loss carryforward --- 262
Cumulative effect of change in accounting
for income taxes 2,540 ---
Net income (loss) 2,384 636
Earnings per share:
Income (loss) before extraordinary credit
and cumulative effect of change in
accounting principle $(.03) $.09
Extraordinary credit - benefit of net
operating loss carryforward --- .07
Cumulative effect of change in
accounting for income taxes .64 ---
Net income (loss) .61 .16
Weighted average shares outstanding 3,926,000 3,891,000
/delval/
-0- 9/10/92
/CONTACT: Jesse H. Riebman, vp and treasurer of AEL Industries, 215-822-2929/
(AELN) CO: AEL Industries, Inc. ST: Pennsylvania IN: ARO SU: ERN

MK-JS -- PH041 -- 8168 09/10/92 15:59 EDT

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